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HomeMy WebLinkAbout08.a.2) General Manager Written AnnouncementsBoard Meeting of April 19, 2012 Written Announcements: Co -Gen Update a) Update on Co -Gen Incident of March 29, 2012 As previously reported at the Board meeting on April 5, 2012, an explosive incident on March 29 rendered the cogeneration system out of service. The District has hired Exponent - Failure Analysis Associates to lead an investigation into the root cause of the incident. A meeting was held on Thursday, April 5, 2012, with related parties: District staff with Exponent representatives, Wood Group (third party maintenance service provider), Solar Turbines (original turbine manufacturer), the District's insurer, and District counsel. Staff is working with Exponent on the protocol for the testing and root cause analysis. Upon all parties' agreement, field testing of system components will commence. On Friday April 6, 2012, Mr. Terry Lee, CalOSHA Engineer- Enforcement Division, performed an unannounced investigation of the cogeneration incident. This investigation was raised due to a complaint received by CaIOSHA. General Manager Ann Farrell, Plant Operation Division Manager Ba Than, and Plant Operator Chris Hesse (representing Employees' Association, Public Employees' Union, Local #1) were at the meeting. After the open conference, Mr. Lee was escorted to the site. At the exit conference, Mr. Lee presented a Document Request Sheet. Staff submitted all requested documents by the due date of April 11, 2012. In general, it was a very positive inspection, and Mr. Lee was impressed with our facility and recordkeeping. Project Related Updates b) Walnut Creek Sewer Renovation Proiect (Phase 9), District Proiect 8401 - Public Workshop The District will host a public workshop on Wednesday, April 25 from 7:00 to 8:00 pm. at CSO in Walnut Creek. The project will replace /rehabilitate approximately 12,000 feet of sewer pipe at several different sites in Walnut Creek using open -cut and pipe- bursting methods. Staff has already spoken to 39 different residents who will be affected by easement work on their property. Written Announcements April 19 2012 Page 2 of 3 CCCERA Updates c) Contra Costa County Employees' Retirement Association (CCCERA)'s Response to the District's Inquiry re Early Payment of Unfunded Actuarial Accrued Liability On March 21, 2012, a letter from Board President Nejedly was delivered to the CCCERA Board to convey the District's interests and concerns regarding early payment of the District's retirement Unfunded Accrued Liability (UAAL). CCCERA's response letter was received on April 11, 2012, a copy of which is attached. Pollution Prevention Activities d) Earth Day Activities on Tuesday, April 17, and Saturday, April 21, 2012 Central San will celebrate Earth Day on Saturday, April 21 with a booth at the John Muir National Historic Site in Martinez. Members of Communication Services, Environmental Services, and Collection System Operations will share the District's pollution prevention message with thousands of visitors who attend the celebration. The District has been a participant in the annual Festival for 20 years. District staff will also spread the District's anti - pollution message for employees and visitors at Walnut Creek's Kaiser Hospital's smaller Earth Day recognition on Tuesday, April 17. e) "Your BIGGEST Patient needs YOU" Brochure Attached is a brochure that was sent to 841 healthcare facilities in our service area last week. The brochure targets healthcare workers, pointing out what they can do to help protect their patients and the environment. Topics covered ranged from handling chemicals and mercury to proper disposal of Fats, Oils and Grease (FOG), "disposable" wipes, and pharmaceuticals. Written Announcements April 19 2012 Page 3 of 3 Out-of-State Conference Attendance fl Colleen Henry to Attend NACWA 2012 National Pretreatment and Pollution Prevention Workshop in Pensacola, Florida, May 9 to 11 Senior Environmental Compliance Inspector, Colleen Henry, will attend the National Association of Clean Water Agencies (NACWA) 2012 National Pretreatment & Pollution Prevention Workshop in Pensacola, Florida, May 9 -11, 2012. Source Control staff attendance at this workshop was included in the 2011- 2012 Technical Training, Conferences and Meetings budget. The training will cover topics such as controlling "flushable" wipes ands bio- cremation at funeral homes, as well as a National Pretreatment Program Update from the EPA that will not be offered at another venue this year. ?A.Z t `IV C Employees' Retirement Association 1355 willow way suite 221 concord ca 94520 925.521.3960 fax 925.646.5747 April 9, 2012 Tames A. Nejedly, President Board of Directors Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 -4392 Re: Early Payment of Unfunded Actuarial Accrued Liability Dear Mr. Nejedly, This letter is in response to your request to the Contra Costa County Employees' Retirement Association ( CCCERA) regarding Central Contra Costa Sanitary District's (the District) potential decision to make an early payment towards the Unfunded Actuarial Accrued Liability allocated to that employer. It is our understanding that the District is considering making a substantial payment towards its UAAL and wants assurances that the District will always be the sole beneficiary of those contributions as well as any investment earnings on those contributions. Two specific scenarios you requested that we consider are 1) how would the additional contribution be treated if the District were ever pooled with another employer, and 2) how would any surplus be treated if, due to future investment earnings or other experience, it turned out that the District contributed more than enough to completely pay off the UAAL? Background Effective with the December 31, 2009 actuarial valuation, CCCERA depooled assets and liabilities by employer, and the District was placed in a cost group by itself (Cost Group #3). This means that the District has its own pool of assets that is credited and debited each year with contributions made by the District and its employees and benefits paid to its former employees. The District's pool of assets is also credited with its share of the actual return on CCCERA's Valuation Value of Assets. April 9, 2012 James A. Nejedly, President i, ; ..:- Page 2'. Treatment of Additional UAAL Payment When an employer makes an additional payment towards the UAAL it is treated in a way such that the payment should not affect any other employers. Since the District is currently in its own rate group, the additional contribution will be credited to the District's assets as shown on page 6 of the December 31, 2010 Actuarial Valuation. Virtually the entire effect of the additional contribution will be on the District's assets, UAAL, and UAAL contribution rate. Note that there is a residual effect on the other cost groups, since the District's share of the investment earnings is proportional to the District's assets. This means that the District will be allocated a larger portion of any deferred gains or losses that exist at the time the additional contribution is made than they would have been had the contribution not been made. If there are substantial deferred losses due to CCCERA's asset smoothing method at the time the District is planning on making the contribution, the District may want to consult with its actuary to quantify the effect of this on the projected return of the District's asset pool. If the District pays off most or all of the existing UAAL, it is possible that future gains could result in the District having a negative UAAL or a surplus. Gains are amortized the same way as losses, so a surplus can create a negative required UAAL contribution or a contribution credit. Any contribution credit will serves to offset the employer's Normal Cost rate. The credit would only apply to Cost Group #3, so the District is the only employer that could benefit from the surplus. It is important to note that regardless of the size of any surplus that may develop; no cash refund to the District would ever be made by CCCERA. As to the treatment of the additional contribution in the event that one or more employers are pooled with the District, note that a number of complications would arise if CCCERA decided to repool. For this reason, repooling is extremely unlikely; however, it is not impossible. Within CCCERA there currently exist cost groups containing different employers who have made different additional contributions to reduce their UAAL contribution rate. Each such employer receives an adjustment to their rate based on their actual additional contribution. In the case where employers are repooled, a similar adjustment could be made to take into account additional contributions made by each employer, along with other possible adjustments. We recommend the District consult with its actuary to further understand the mechanics of these adjustments. We cannot guarantee what actions the Board may take in the future, but we do not envision a scenario where one employer would benefit from an extra UAAL payment made by another employer. CCCERA has always credited each employer with its additional contributions even in cases where the employer was not in its own cost group. April 9, 2012 James A. Nejedly, President Page 3 Other Considerations If the District makes an additional contribution towards their UAAL and no corresponding increase in benefits result, the District will have a lower required contribution than it otherwise would have had until such time as the lower contributions offset the additional contribution. The amount of the difference will depend on the size of the contribution and the actual investment earnings on those contributions. It is important to note that while the current UAAL is measured using an assumed long -term rate of return (currently 7.75% for CCCERA), any contribution by the District will only be credited with the actual rate of return. The District will benefit from returns above 7.75% but will have to make up the difference whenever returns are below 7.75 %. This means that while the additional contribution will result in lower contribution rates for the District, it will also result in higher contribution rate volatility due to investment returns above or below the assumed rate of return. Conclusion Any contributions made by the District and its employees to CCCERA are allocated to the District's asset pool, so those contributions can only be used to pay benefits to former District employees. Any additional contributions made by the district to pay off the UAAL in advance will serve to reduce future required contributions by the District regardless of whether any other employers may be pooled with the District in the future. However, there are a number of other considerations that need to be addressed before it can be concluded that paying off a large portion on the UAAL is in the best interest of the District. Sincerely, Kurt Schneider Retirement Deputy Chief Executive Officer Cc: Marilyn Leedom, Retirement Chief Executive Officer � t • Use less -toxic disinfectants; for example, hydrogen peroxide readily breaks down to /a !f preferable to quaternary ammonium compounds (quats) which contain chlorine. • Install and maintain a silver recovery system if x -ray chemicals flow into the sewer; or dispose of them as hazardous waste. Contact the Household Hazardous Waste Collection Facility at 1 -800- 1 646 -1431 for information or to schedule an Y ;� y appointment, or visit www.centralsan.org /hhw. `r Jor Thank you for caring about the environment while caring for vour patients! ealthcare workers like you - physicians, nurses, technicians, health services managers, and medical office staff - touch the lives of people at every level of society. Because of that, you can play a leadership role, not only in patient care, but also in helping us to protect the water environment. We're the Central Contra Costa Sanitary District. Our mission is to protect public health and the environment by collecting and treating wastewater and promoting pollution prevention. While most of the wastewater your facility sends to the sewer is similar to household wastewater, it could contain potential contaminants of concern including toxic chemicals, pharmaceuticals, and mercury. This brochure describes steps you can take to: Create a healthier environment for your staff and patients by reducing their exposure to toxic chemicals Prevent water pollution by keeping pharmaceuticals and other items from going down drains. CHEMICALS isinfectants, cleaners, x -ray chemicals and sterilants can be toxic and can pose serious risks to the water environment if allowed to enter the sewer. WHAT YOU CAN DO () Handle and store all chemicals properly to prevent spills. * Neutralize or deactivate cold sterilization chemicals before pouring them down the drain (treatment chemicals can be purchased through your chemical supplier), or dispose of them as hazardous waste. Contact our Environmental Compliance Section for information (925) 229 -7288, or the Household Hazardous Waste Collection Facility (1- 800 - 646 -1431) to schedule an appointment for disposal. o Minimize the use of solutions containing glutaraldehyde or formaldehyde. • Use less -toxic disinfectants; for example, hydrogen peroxide readily breaks down to oxygen and water and is environmentally !f preferable to quaternary ammonium compounds (quats) which contain chlorine. • Install and maintain a silver recovery system if x -ray chemicals flow into the sewer; or dispose of them as hazardous waste. Contact the Household Hazardous Waste Collection Facility at 1 -800- 1 646 -1431 for information or to schedule an Y ;� y appointment, or visit www.centralsan.org /hhw. 1 i I PHARMACEUTICALS cientific studies show the chemicals in some drugs may cause harm to aquatic life. Wastewater treatment facilities are not equipped to remove all traces of pharmaceutical chemicals, so if you flush your drugs a portion of those contaminants will reach local waters. MERCURY i e! WHAT YOU CAN DO A� ,�� IN if � ? .� _ C=�'9 • Ensure that unwanted drugs or sharps are never flushed or poured down a drain. • Return expired pharmaceuticals to the manufacturer. • Use a licensed pharmaceutical waste hauler to take sharps and expired drugs to a proper disposal location. • Our Pharmaceutical Fact Sheet provides more information and can be found here: www. centralsan .org /healthcarefacilities. ercury is in WHAT YOU CAN DO a variety of • Use digital instead of mercury thermometers; products, replace blood pressure cuffs with including nondigital electronic sensors; substitute Anderson thermometers, tubes for Canter tubes. blood pressure cuffs, esophageal dilators, • Keep mercury spill cleanup kits in ; fluorescent bulbs, areas where mercury- containing is used. =" batteries, and some equipment laboratory chemicals. • Dispose of all mercury - containing items (including „y \ Mercury is acutely toxic fluorescent light bulbs) as ' in extremely small y hazardous wastes. Contact the{p j amounts, and it cannot be completely removed Household Hazardous Waste Collection Facility f' by sewage treatment facilities before at 1- 800 - 646 -1431 MERCURY` 1 LB AVD. NET t for information !k discharge to the water or to schedule an % environment. Mercury appointment, or visit =+f is a serious problem for wwwcentralsan.org /hhw. the health of the Bay. =' % ,, : FATS, OILS AND GREASE f your facility has a kitchen or cafeteria, it is a source of fats, oil and grease which can cause sewer clogs and overflows. Sewage overflows can put public health at risk, damage the environment, and cause property damage. WIPES isposable cleaning and disinfecting wipes do not break down quickly in water. If flushed, they can clog your sewer line or the public sewer systems, potentially causing sewage overflows which can put public health at risk, damage the environment, and cause property damage. WHAT YOU CAN DO o Put all disposable wipes (even if labeled "flushable "), paper towels, and similar items in the trash. # Never flush anything other than toilet paper and human waste down a toilet. Nasty clumps of so- called "flushable" wipes clog up our equipment when they are flushed into the sewer. WHAT YOU CAN DO 0 Ensure that everyone at your facility knows to never pour fats, oil or grease down drains. 0 Pour cooking oil and grease into a sealable container with an absorbent material (such as paper garbage) and discard it in the trash. • If your facility's kitchen or cafeteria is large enough to require a grease - trapping device, ensure it is properly operated and maintained. r �, Small actions like these can make a big difference! We appreciate everything you do to help protect the environment. If you have questions or would like additional information, please call our Environmental Compliance staff at (925) 229 -7288 or visit our Best Management Practices online resource center at www.centralsan .org/healthcarefacilities. CCCSD serves 455,400 customers within its 140 - square -mile service area. Sewage collection and waste- water treatment (and HHW service) for 321,800 people Wastewater treatment for 133,600 residents in Concord and Clayton by contract and HHW service HHW disposal only CCCSD's Headquarters, treatment plant, CSO Division, and HHW Collection Facility are located in Martinez Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 94553 7 The Central Contra Costa Sanitary District protects public health and the environment through safe and effective wastewater collection, treatment and disposal for 455,000 residents and businesses. It also operates a Household Hazardous Waste Collection Facility and promotes pollution prevention through outreach and inspection programs.